IFAJun 4 2018

AFH hunts for bigger IFAs to buy

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AFH hunts for bigger IFAs to buy

Aim-listed financial planning firm AFH grew profits by 177 per cent in the six months to 30 April 2018, and said it is keen to keep acquiring businesses.

The company reported a profit of £2.5m, on revenue of £22.7m.

That represents an increase of 63 per cent compared with the same six month period last year.

AFH had cash reserves of £23.7m at the end of April, while the amount it is required to hold for regulatory purposes is just £2.5m.

Alan Hudson, chief executive of AFH, said acquiring IFA and other businesses remains a key component of the firms strategy.

He said: "Our pipeline remains strong with a number of opportunities at the due diligence stage or in contract negotiations at the period end.

"And while we are looking to increase the average size of our acquisitions, we remain committed to providing an exit for retiring IFAs, with our existing advisers offering the benefits of the full AFH service to their clients.

"We believe that the expansion of our financial planning products and scope is in the best interests of both our shareholders and clients.

"While maintaining a focus on the IFA market and in line with our core objective of delivering the best possible deal for all our clients, we are further broadening our product offering to provide wider access to mortgages, income and other protection and commercial and general insurance."

The company reported it grew assets to £3.2bn, while revenue generated per financial adviser grew to £220,000, an 18 per cent increase or £40,000 up compared with the same period in the previous year.

Mr Hudson said: "These results are a further vindication of our strategy to generate long-term value for shareholders by providing exceptional value and service to our clients and using our increasing size to drive down platform and fund management charges.

"We were particularly pleased with the positive contribution made by Eunisure, which joined the group less than a year ago.

"We continue to view the protection and insurance areas of the market as underserved and providing a significant opportunity for the future."